ANDY NATIVI / GENOA & TOM GILL / LONDON
Carriers look to cut costs and build alliances to exploit market improvement
A string of poor financial results shows Italy's regional airlines have not escaped the turbulence in the aviation industry, but the operators hope that by lowering costs and building on alliances with major airlines they can capitalise on a market upturn this year.
The country's largest privately-owned carrier, Meridiana, closed 2001 with a net loss of €10.2 million ($9.3 million). Operating losses hit €12.2 million and turnover stood at almost €369 million as passenger traffic fell by 7.4% to 3.27 million and load factors fell to 54.5%. This year the Olbia, Sardinia-based airline hopes to break even through cuts in operating costs and new labour contracts.
Meridiana is discussing with SkyTeam members Alitalia and Air France a wide-ranging commercial alliance - a deal strongly favoured by Alitalia pilots who are opposing a possible alliance with charter operator Volare Group involving domestic and European services. Handing over flights to the more efficient, lower-cost Volare would have clear advantages for Alitalia, whose high operating costs have forced it to cut its fleet and routes. However, Alitalia unions favour an alliance with Meridiana.
Meanwhile, Air Dolomiti suffered a €2.32 million net loss from a turnover of €132.5 million, down from break-even in 2000. Despite the losses, at an operating level it made a profit of €5.46 million and Air Dolomiti is adding to its fleet faster than originally planned. It will have 21 aircraft by the end of this year and will expand the fleet to 24 in 2003 and 27 in 2004. Last year Air Dolomiti took its second and third Bombardier CRJ200 and has recently taken delivery of two more. While these additions will be used for the company's point-to-point network, a new ATR 72 due for delivery next month will boost feeder services into Star Alliance hubs in Europe. The carrier has signed a codesharing agreement with Star Alliance member United Airlines following an earlier codesharing deal with Star member and minority shareholder Lufthansa.
The fortunes of Bergamo-based Gandalf also hinge in part on its codeshares with Air France. The regional made a net loss of €27.9 million, a 25% improvement on the previous year, as turnover increased 65% to €50.62 million. This year Gandalf aims to increase turnover by 15-20% and carry 350,000 passengers, or 18% more than 2001, with 11 aircraft.
Source: Flight International
